Use this RD calculator to instantly compute the maturity amount and interest earned on your recurring deposit. This RD calculator uses the standard quarterly-compounding formula used by Indian banks and the post office. Compare RD returns from SBI, HDFC Bank, ICICI Bank, and Post Office RD before investing.
RD Calculator
Calculate maturity amount on your Recurring Deposit with monthly instalments.
RD Interest Calculation
Banks and the post office compound RD interest quarterly, applying it to each monthly instalment for the time it remains on deposit. The formula for each instalment is: A = P(1 + r/4)^(4t) where P = monthly instalment, r = annual rate, and t = time (in years) that instalment remains invested until maturity. The total maturity value is the sum of every instalment’s individually compounded value.
Current RD Rates in India (July 2026)
Most major banks offer 6.5%–7.3% for regular customers on 1–5 year RDs, with senior citizens typically getting 0.50% extra. Small finance banks and a few private banks (Yes Bank, IndusInd Bank, Bandhan Bank) offer higher rates of 7.5%–8%.
What is a Recurring Deposit (RD)?
A Recurring Deposit is a savings instrument where you invest a fixed amount every month for a chosen tenure, at a predetermined interest rate, and receive the full maturity value (principal + interest) at the end of the term. Unlike a Fixed Deposit, which needs a lump sum upfront, an RD lets you build savings gradually through disciplined monthly investing. RDs are offered by nearly all banks and the Post Office, with tenures ranging from 6 months to 10 years.
How is RD Interest Calculated?
RD interest is compounded quarterly in India. Because each monthly instalment is invested for a different length of time, each one earns a different amount of interest — the first instalment earns interest for the full tenure, while the last instalment earns interest for only one compounding period. The maturity value is the sum of all instalments after applying compound interest individually to each one.
RD Calculation Example
For a monthly instalment of Rs. 5,000 at 7% annual interest for 3 years (36 months, quarterly compounding):
| Parameter | Value |
|---|---|
| Total Invested (36 x Rs. 5,000) | Rs. 1,80,000 |
| Interest Earned | Rs. 20,686 |
| Maturity Amount | Rs. 2,00,686 |
Current RD Interest Rates in India (July 2026)
| Bank | 1 Year | 3 Years | 5 Years | Senior Citizen |
|---|---|---|---|---|
| SBI | 6.80% | 6.75% | 6.50% | +0.50% |
| HDFC Bank | 6.60% | 7.00% | 7.00% | +0.50% |
| ICICI Bank | 6.70% | 7.20% | 7.00% | +0.50% |
| Axis Bank | 6.70% | 7.10% | 7.00% | +0.50% |
| Post Office RD | – | 6.70% | – | N/A |
Rates shown are indicative general-public rates for standard tenures as of July 2026; always confirm current rates on the bank’s official website before investing.
RD vs Fixed Deposit (FD)
| Parameter | RD | FD |
|---|---|---|
| Investment style | Fixed monthly instalments | One-time lump sum |
| Best for | Salaried individuals building savings discipline | Those with a lump sum to invest |
| Interest rates | Similar to FD, sometimes 0.1–0.2% lower | Benchmark rate |
| Tax treatment | Interest fully taxable, TDS applies | Interest fully taxable, TDS applies |
| Premature withdrawal | Allowed with penalty | Allowed with penalty |
Related Calculators & Guides
- FD Calculator — Calculate fixed deposit maturity amount
- SBI FD Calculator — SBI-specific fixed deposit calculator
- Post Office MIS Calculator — Monthly income scheme returns
- PPF Calculator — Compare PPF returns with RD
- Best FD Rates 2026 — Compare lump-sum deposit rates across banks
- Sukanya Samriddhi Yojana Guide — Another disciplined monthly-savings option
Frequently Asked Questions
Is RD interest taxable?
Yes, RD interest is fully taxable as per your income tax slab, the same as FD interest. Banks deduct TDS at 10% if the annual interest across all your RDs and FDs with that bank exceeds Rs. 40,000 (Rs. 50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
What happens if I miss an RD instalment?
Most banks charge a small penalty (typically Rs. 1–15 per Rs. 100 of the missed instalment per month, depending on the bank) for late or missed monthly deposits. If instalments are missed for several consecutive months, the bank may close the RD account and pay out the accumulated balance with applicable interest.
Can I withdraw my RD before maturity?
Yes, premature closure is allowed at most banks, usually with a 0.5–1% reduction in the interest rate applicable for the period the deposit was actually held. Post Office RDs allow premature withdrawal after 3 years with a lower interest rate.
Can I take a loan against my RD?
Yes, most banks allow a loan or overdraft of up to 80–90% of the RD balance at a small markup over the RD interest rate, without breaking the deposit.
RD or FD — which is better for me?
Choose an RD if you want to build savings discipline through monthly investing without a large lump sum upfront. Choose an FD if you already have a lump sum and want to lock in today’s interest rate for the full amount immediately. Interest rates are usually comparable between the two.
Disclaimer: Interest rates are indicative and subject to change. Please verify current rates with respective banks before investing. RD returns are subject to TDS and income tax as per applicable laws.
Reviewed by: MoneyPundit Team | Last updated: July 6, 2026
Data source: Bank RD rates referenced from BankBazaar's RD rate comparison (updated 2 July 2026). This calculator uses your own entered rate; it does not assume any single bank's RD rate. For current bank-specific rates, verify on the bank's official website.
Methodology: Standard quarterly-compounding recurring deposit formula used by Indian banks: A = Σ P(1+r/4)^(4t) for each monthly instalment, where P is the monthly instalment, r is the annual rate, and t is the time (in years) that instalment remains invested until maturity.
